When starting a business in the Philippines, getting a business permit should be one of your top priorities. This permit shows that your business is officially allowed to operate regardless of location or type, a physical store, online shop, or any other enterprise. Knowing how to get a business permit in the Philippines can help streamline your setup and operation. In this article, we will explore how to get a business permit in the Philippines.
What is a business permit?
A business permit, also known as the mayor’s permit, is an essential certification that validates the legitimacy and authorization of a business to operate in a specific city or municipality. This official document is processed by the local government unit (LGU) supervising the business’s location. A business permit in the Philippines is essential to ensure the business complies with local tax regulations, safety, security, health, and sanitation. This permit also grants access to any support or assistance the LGU provides to businesses in the area. The law on business permits in the Philippines is that all businesses, whatever the legal form, must secure a mayor’s permit or municipal license from the city or municipality where they are located.
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Requirements to get a business permit (mayor’s permit) in the Philippines
Before applying for a business permit, completing the necessary registration with government agencies and securing other permits and licenses for business in the Philippines is essential. Below are the requirements to get a business permit in the Philippines.
Fire Safety Inspection Certificate (FSIC)
You have a Fire Safety Inspection Certificate (FSIC) to ensure the safety of the building. To obtain a Fire Safety Inspection Certificate, you must provide the following:
- Building permit and building plan.
- Barangay business clearance.
- Fire insurance coverage.
- Proof of compliance with requirements and recommendations from fire safety inspectors.
Sanitary permit
Do you want to open a food establishment in the Philippines? You then must obtain a sanitary permit. To secure a sanitary permit, you need to fulfill the following requirements:
- Most recent chest x-ray results of the business owner.
- 1×1 photo.
- Inspection certificate of the establishment.
- Receipt of paid sanitary permit fee and sanitation inspection fees.
- Medical Certificate and Health Card issued by the City Health Officer.
Building permit and Electrical Inspection Certificate
To obtain a building permit and Electrical Inspection Certificate, you must submit the following requirements:
- Building plans.
- Lot plan.
- Clearances from the homeowners association, barangay, or any other authorized offices.
- Fire safety requirements.
- Contract of lease and authorization of owner (if rented).
- Title, tax declaration, and tax receipt (if owned).
- Contractor’s business permit.
- Sketch of your business location.
- Bill of materials, specifications, structural computation.
- Copy of License of the Engineer.
Certificate of occupancy
To acquire a certificate of occupancy, the following documents are necessary:
- Images or photos of the site.
- Fire Safety Inspection Certificate (FSIC).
Locational clearance
For a locational clearance, you need to submit the following:
- Pictures of the site.
- Fire Safety Inspection Certificate (FSIC).
- Building permit.
- Authorization letter from the owner (if rented).
- Electrical permit.
- Sanitary permit.
- Certification of No Improvement.
- PRC license /PTC of the engineer.
Electric utility connection
To establish an electric utility connection, the required documents are:
- Letter of request from the owner.
- Electrical plan.
- DTI registration or copy of SEC registration with Articles of Incorporation.
- Copy of the lease contract, Transfer of Certificate Title (TCT), or Deed of Sale.
- Company SSS number or Tax Identification Number (if SEC/DTI registration is unavailable).
How to get a business permit in 6 steps
Understanding the process of getting a business permit in the Philippines is essential for any individual or organization planning to operate a business there. The business permit registration may vary depending on the Local Government Unit (LGU) you are dealing with. Below are six steps in applying for a business permit in the Philippines.
Step 1: Visit the Business Permit and Licensing Office (BPLO)
Locate the BPLO within the premises of the city/municipal hall that has jurisdiction over your business address. In some cases, to get a business permit in the Philippines, you may have the option to apply for a new business permit or renewal at malls that have partnerships with your LGU.
Step 2: Secure and complete the application form
Obtain it on-site or download it from the city’s website. Ensure that you provide accurate and complete information on the form.
Step 3: Submit the application form and other requirements
Submit the completed application form and all the mayor’s permit requirements. The personnel at the BPLO will evaluate your documents to ensure everything is in order.
Step 4: Undergo assessment of tax and fees
When your application is completed, it will be assessed for taxes and fees. The BPLO officials will compute the amount you must pay according to the nature and size of your company.
Step 5: Pay the assessed tax and fees
Proceed to the cashier and pay the assessed tax and fees to get a business permit in the Philippines. Once you have paid, you will receive an official receipt as proof of payment.
Step 6: Claim your business permit
After paying taxes and fees, you can claim your business permit, which may come with a registration plate/sticker or other certificates. Make sure to display these legal documents needed to start a business in the Philippines as the LGU requires.
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How much does it cost to get a business permit in the Philippines?
Starting a business comes with various fees to get a business permit in the Philippines, depending on your location. Here is an overview of the cost of a business permit in the Philippines:
- Business permit processing fee: ₱ 500 ($9)
- Mayor’s permit fee: ₱ 100 ($1.80)
- Sanitary fee: ₱ 150 ($2.70)
- Building inspection fee: ₱ 200 ($3.60)
- Electrical inspection fee: ₱ 20 ($0.36)
- Plumbing fee: ₱ 15 ($0.27)
- Signboard fee: ₱ 50 ($0.90)
- Fire fee: ₱ 300 ($5.40)
- Sticker fee: ₱ 50 ($0.90)
Renewing your business permit in the Philippines
For small business owners, renewing your business license in the Philippines is an essential task that must be completed every year to ensure the legal operation of your business. It is advisable to get a business permit in the Philippines and start filing for renewal before the deadline, January 20th of each year.
The documents you’ll need to renew your business permit can differ based on location. However, here are the common business permit requirements for renewal:
- Previous year’s business permit.
- Barangay Clearance Certificate.
- Tax Residency Certificate (TRC).
- Sanitary permit.
- Fire Safety Inspection Certificate.
In addition to these standard requirements to get a business permit in the Philippines, you may also need to provide the following additional and updated documents:
- Audited financial statements from the previous year.
- Confirmation of the number of employees at the time of business permit renewal, including their individual addresses and registration numbers for TIN, SSS, PHIC, Pag-ibig, etc.
- Quarterly VAT returns from the previous year.
- Letter of Explanation (if gross sales are lower than the previous year).
How much is the renewal of a business permit in the Philippines?
When renewing a business license in the Philippines, the fees vary depending on the city or town of your business. In determining the specific fees applicable to get a business permit in the Philippines for renewal, it is recommended to check with your local government unit. Additionally, it is essential to remember that there is a 25% surcharge on the renewal fees and an additional 2% charge for every month of delay in renewing your business license in the Philippines. Therefore, it is crucial to ensure timely renewal to avoid incurring unnecessary penalties.
Get a business permit in the Philippines
Our expert legal team is skilled in handling various aspects of business setup, including getting a business permit. We can help you obtain a new business permit in the Philippines, but we can also assist you with renewing your current business permit.
To learn more about how our legal experts can assist you in obtaining a business permit in the Philippines, please provide your details below or contact us at [email protected].
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Frequently Asked Questions (FAQs)
How to compute the business permit fee in the Philippines?
The business permit fee in the Philippines can be computed based on various factors such as the type of business, location, and annual gross sales.
Do you need a business permit for Airbnb in the Philippines?
Yes, you need to get a business permit in the Philippines for Airbnb.
Are the mayor’s permit and business permit the same?
Yes, a mayor’s permit and a business permit are the same thing. It is a government license that allows you to operate your business legally within your local government unit.
How long is a business permit valid?
A business permit is typically valid until December 31st of each year and needs to be renewed before the end of January the following year.
Where to get a business permit in the Philippines?
To get a business permit in the Philippines, it is usually obtained at the City or Municipal Hall’s Business Permit and Licensing Office.
